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B. This Agreement may be suspended or terminated by CITY upon five (5) <br />days' written notice for violation by SUBRECIPIENT of the terms and conditions of the this <br />agreement or applicable State or Federal requirements. In the event of such suspension <br />or termination, SUBRECIPIENT shall only be entitled to reimbursement for approved <br />expenses incurred up to the effective date of suspension or termination. <br />C. In the event SUBRECIPIENT defaults by failing to fulfill all or any of its <br />obligations hereunder, CITY may declare a default and termination of this Agreement by <br />written notice to SUBRECIPIENT, which default and termination shall be effective on a <br />date stated in the notice which is to be not less than ten (10) days after certified mailing or <br />personal service of such notice, unless such default is cured before the effective date of <br />termination stated in such notice. If terminated for cause, CITY shall be relieved of further <br />liability or responsibility under this Agreement, or as a result of the termination thereof, <br />including the payment of money, except for payment for approved expenses incurred for <br />services satisfactorily and timely performed prior to the mailing or service of the notice of <br />termination, and except for reimbursement of (1) any payments made for services not <br />subsequently performed in a timely and satisfactory manner, and (2) costs incurred by <br />CITY in obtaining substitute performance. <br />D. The grant of funds by City to SUBRECIPIENT pursuant to this Agreement <br />may be terminated for convenience upon two weeks written notice to SUBRECIPIENT. <br />E. In the event this Agreement is terminated as set forth in subparagraphs <br />XII.A. through XII.D., inclusive, SUBRECIPIENT agrees to immediately return to CITY <br />upon CITY's demand -and prior to any adjudication of SUBRECIPIENT's rights, any and all <br />funds not used, and to comply with paragraph "XI. REVERSION OF ASSETS" of this <br />Agreement. <br />XIII. LIMITATION OF FUNDS <br />The United States of America, through HUD, may in the future place programmatic <br />or fiscal limitations on the use of EZ funds which limitations are not presently anticipated. <br />Accordingly, CITY reserves the right to revise this Agreement in order to take account of <br />actions affecting HUD program funding. In the event of funding reduction, CITY may, in its <br />sole and absolute discretion, reduce the budget of this Agreement as a whole or as to <br />costs category, may limit the rate of SUBRECIPIENT's authority to commitand spend <br />funds, or may restrict SUBRECIPIENT's use of both its uncommitted and its unspent <br />funds. Where HUD has directed or requested CITY to implement a reduction in funding, in <br />whole or as to a cost category, with respect to funding for this Agreement, CITY's City <br />Manager or delegate is authorized to act for CITY in implementing and effecting such a <br />reduction and in revising, modifying, or amending the Agreement for such purposes. <br />Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal accountability, <br />financial soundness, or compliance with this Agreement, CITY may suspend the operation <br />Page 11 of 13 <br />